- WTI holds lower ground, extends Friday’s pullback from monthly top.
- Challenges to US President Joe Biden’s stimulus, lack of fresh positives for oil back consolidation moves.
- S&P 500 Futures drop 0.20%, Tokyo open eyed amid vaccine hopes, geopolitical tension.
WTI trims intraday losses while recently picking up bids to $62.93, down 0.27% on a day, during the Asian session on Monday. Even so, the oil benchmark drops for the second consecutive day after stepping back from a one-month high on Friday.
Although persistent US dollar weakness and risk-on mood should favor oil buyers, fears of the early peak in demand are the latest to trigger the market’s consolidation. As per Goldman Sachs’ analysis, oil demand suggesting peaking out past-2025.
Also on the negative side is the intraday loss of 0.20% by the S&P 500 Futures as it suggests challenges to risk. Behind the moves could be US Republicans’ readiness to block President Joe Biden’s $2.25 trillion infrastructure spending. Also on the risk-negative side could be the US-Russia tension and an absence of progress in the Washington-Tehran nuclear talks.
It should, however, be noted that the broad recovery in the US and the UK, backed by the speedy vaccinations keep the WTI bulls hopeful even as OPEC+ eyes to restore oil output after multiple months of voluntary cuts.
Moving on, a light calendar in Asia, as well as in the West, should keep WTI traders at the mercy of the risk catalysts. Given the latest pullback in S&P 500 Futures waiting for Japanese markets to open, oil traders may keep their eyes on the US dollar index (DXY) and bond moves for clarity of trades.
Given the commodity’s failure to cross the $64.00 threshold, its pullback towards the late March top near $62.25 can’t be ruled out.
Additional important levels
|Today last price||62.95|
|Today Daily Change||-0.16|
|Today Daily Change %||-0.25%|
|Today daily open||63.11|
|Previous Daily High||63.93|
|Previous Daily Low||62.88|
|Previous Weekly High||63.93|
|Previous Weekly Low||58.77|
|Previous Monthly High||67.87|
|Previous Monthly Low||57.27|
|Daily Fibonacci 38.2%||63.28|
|Daily Fibonacci 61.8%||63.53|
|Daily Pivot Point S1||62.69|
|Daily Pivot Point S2||62.26|
|Daily Pivot Point S3||61.64|
|Daily Pivot Point R1||63.74|
|Daily Pivot Point R2||64.36|
|Daily Pivot Point R3||64.78|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.